Help

Newsletter

Lawyer Kelly Mathis sentenced to 6 years as mastermind of the Allied Veterans gambling scandal; free while under appeal

Kelly Mathis weeps as he hugs his wife Donna after his sentencing in Seminole County Court in Sanford, Fla., Wednesday, Feb. 12, 2014.

George Skene Orlando Sentinel Kelly Mathis hugs his wife, Donna, after being sentenced to six years as the mastermind in the Allied Veterans case.

SANFORD | A longtime force in Jacksonville legal circles hit bottom Wednesday as a judge sentenced attorney Kelly Mathis to six years in prison as the mastermind of the Allied Veterans of the World gambling scandal.

Mathis, a 50-year-old former president of the Jacksonville bar, remains free on bond pending an appeal filed immediately after Seminole County Circuit Judge Kenneth R. Lester Jr. passed sentence.

Mathis insisted on his innocence during his testimony, which followed a dozen character witnesses, including three Jacksonville attorneys who are former Florida Bar presidents.

Prosecutors have said the scandal involved a St. Augustine-based $300 million gambling ring set up to look like a veterans charity and using dozens of gaming centers in strip malls statewide to make money. Mathis and his law firm were accused of pocketing $6 million in the five years they worked for Allied.

“What this case boils down to is everyone here took a gamble: There’s a lot of money here. It’s worth the risk,” Lester said during the hearing.

The investigation prompted the Legislature to ban the storefront gaming centers, often called Internet cafes, though many others have opened since.

Nearly 60 people were arrested, including former Jacksonville police union president Nelson Cuba and former vice president Robbie Freitas, who are among several dozen defendants awaiting trial.

Clay County Republican Jennifer Carroll resigned as lieutenant governor in March 2013 during the investigation. She stepped down after being questioned by law enforcement about her connection to Allied Veterans of the World. She has been accused of no wrongdoing.

Cuba and Freitas have a court date in Sanford Thursday afternoon, though nothing significant is expected to occur.

Mathis, the first person to go to trial, got six years on one count of racketeering, which was on the low end of the sentencing guidelines that topped out at 36 years. Lester also sentenced Mathis to five years concurrently for the full bucket of 50 counts of helping run a lottery, while he got time served for about 50 counts of possession of an illegal slot machine or device.

Mathis stood outside the courtroom and locked arms with his wife, Donna, as they both insisted on his innocence. Mathis said he was simply offering legal advice to the leaders of Allied and did not partake in any crimes. He had his law license suspended after a jury convicted him in October.

“I’m relieved a little bit because I think I’ll prevail on appeal,” Mathis said. “But I’m still scared, still concerned about this whole thing. I don’t know what I’m going to have to do with my life now.”

Prosecutors said the centers were mini-casinos, and no one who bought Internet time actually used it because everyone came to gamble. Prosecutors said Mathis knew the organization was breaking the law and was helping them get away with it as their attorney and the brains behind the operation.

Statewide prosecutor Nick Cox said after the hearing he couldn’t believe Mathis continues to profess his innocence.

“I don’t like prosecuting lawyers because it gives all of us a black eye,” Cox said. “However, in the end, this case really was about deception and misleading people into what they were really doing.”

Lawyers for Mathis argued that the Internet time was a legitimate product. They also argued that Mathis was merely giving legal advice and wasn’t responsible for any illegal activity.

Mathis’ attorney, Mitch Stone, said he has strong grounds for the appeal.

“The state here said all along we are going to prove this is gambling, that this is about gambling,” Stone said. “If that’s the case, then why did they not go after 1,450 other Internet cafes that were doing the exact same thing?”

As for the sentence, Stone said, “We’re really not serving any valid purpose by incarcerating Mr. Mathis.”

Mathis’ character witnesses agreed. They included former Florida Bar presidents, Jacksonville attorneys Hank Coxe, Jim Rinaman and Rut Liles. Most of them, including other Jacksonville attorneys and long-time friends, urged the judge to give Mathis community service. A pre-sentence report recommended he serve two years of house arrest.

“I think that [community service] would be an ideal solution for a difficult problem which would benefit everyone,” Rinaman said.

Coxe didn’t suggest what sentence Mathis should face, but he described him as an honest man.

“If he were to tell you the sky is blue, the sky is blue,” Coxe said.

Mathis told the judge he dreamed of being a lawyer since he was a child and worked his way through college to get his degrees. Mathis started his own law firm in 2003, focusing on business litigation, personal injury litigation, medical malpractice, civil trial law and business law.

Along with his leadership post at the Jacksonville Bar Association, he also served as president of the Jacksonville Association of Defense Counsel.

Mathis told Lester he wouldn’t throw away his career for anything.

“I believe I was doing the right thing for my clients,” Mathis said of Allied Veterans. “I believe I was doing the right thing our system expects lawyers to do on their behalf.”

The most emotional testimony came from Mathis’ wife, who tearfully said that the scandal has devastated her and the couple’s four daughters. She read letters from their children, who were not in court. The couple has been married 19 years.

“He stands for honor, integrity, nobility, just to name a few,” Donna Mathis said. “He did not, he would not, break the law.”

Those who’ve already received deals in the case included former Allied commanders Jerry Bass of Jacksonville and Johnny Duncan of Nassau County and the designer of the computer software for the games, Chase Burns. They, along with others who’ve pleaded guilty, received no jail time.

Jim Schoettler: (904) 359-4385

MORE COVERAGE IN CONNECTION WITH THE ALLIED VETERANS OF THE WORLD INVESTIGATION